The government is taking a second look at the labour retrenchment package due to stiff opposition from unions and employers, a top minister said.
The previous government pushed through a labour retrenchment formula together with an insurance scheme in the guise of an 18-month dole.
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rnIn the run up to Aprils polls, the former Labour Minister Mahinda Samarasinghe raised the maximum compensation ceiling from 30 to 50 months of salary. The law applies to all firms whos net profits exceed Rs.
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rnBut moves to start an Unemployment Benefit Insurance Fund (UBIF) with a seed capital of Rs. 3 bn from the Treasury, got sidelined in the run up to the polls.
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rnldblquote The previous government promised to initiate the compensation fund and the lay off formula together, but this didnt happen. In the meantime, all parties are unhappy with the way things are now run,
dblquote Labour Minister, Athauda Seneviratne said.
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rnThe United Peoples Freedom Alliance governments key partner endash the Jan